Photo - Dinesh Bhatia, CEO & Co-founder, TradeHero
Malaysian Structured Warrants (SW) issuer, Macquarie Capital Securities Malaysia (Macquarie) and Singapore based financial learning app company TradeHero have launched Malaysia's first virtual warrant competition, with RM100,000 (US$26,589) in prize money to be given away, they said.
Macquarie's head of derivatives for South East Asia Barnaby Matthews said that "Warrant Hero is a SW simulation contest that allows investors to virtually trade SW using the TradeHero app on iOS and Android devices."
"The aim of the contest is to improve investors' understanding and awareness of SW in Malaysia," said Matthews. "Macquarie sees education as the key to continued market growth and the Warrant Hero contest is the latest initiative in our drive to develop the market. The more successful investors are at trading SW, the more the market will grow."
"There is an increasing need to promote financial literacy, particularly among millennials and aspiring investors, and what better way to achieve this than with a gamified, risk free and social environment," said Dinesh Bhatia, chief executive officer and co-founder, TradeHero. By working with financial partners, including Macquarie, we are promoting financial education, building the investors who will drive financial markets of tomorrow."
Macquarie's Matthews said that since October 2014, the structured warrant market on the Bursa Malaysia has grown from an average daily traded value of around RM5 (US$1.33) million to more than RM115 (US$30.58) million over the past few weeks, an increase of more than twenty times. Over this period, Macquarie has contributed more than 61 percent of the daily traded volume on the Malaysian SW market.
He said the growth of SW has been fuelled by the improvement in market making services, increased transparency and tools online, and the introduction of foreign index warrants.
Dato' Tajuddin Atan, chief executive Officer of Bursa Malaysia (Malaysian stock exchange), said, "Macquarie has stepped up their game in promoting SW in Malaysia. I am glad to see their continued engagement with the marketplace and in rolling out the first SW-focused game locally. The gamification route has proven to be a big crowd puller and is definitely a sure way to engage with our intended audience, which includes our millennials."
"Engaging them through a channel they are familiar with and through games will allow the capital market to garner more interest and deepen our engagement levels. However, education remains key to any successful foray into trading or investing and I applaud Macquarie for their commitment to educating the public and in promoting interest," said Tajuddin.
Macquarie's Matthews said: "We have had enormous success with our Warrant Hero contest in Singapore and Thailand, attracting more than 15,000 participants this year. With TradeHero's established Malaysian user base of 20,000, we expect a large number of engaged participants whom we can educate on SW investments."
Warrant Hero will run for 12 weeks, starting on 3 August and ending on 23 October 2015. Participants will be given RM100,000 (US$26,589) in TradeHero dollars and can buy and sell SW in a simulated environment. The top performing traders each fortnight will receive cash prizes and grand prizes for the winners at conclusion of the contest. The contest is free to join, and participants can download the app by visiting en.tradehero.mobi/warrantheromy.
Financial services provider Macquarie Group (Macquarie), founded in 1969, acts primarily as an investment intermediary for institutional, corporate and retail clients and counterparties around the world.
Founded in 2012 in Singapore, TradeHero, which is a free-to-download stock market and currency trading gamified simulation app, draws real-world data from global exchanges and data.
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